Enterprise Value (EV)
Current Enterprise Value (EV)
CoStar Group Inc., current enterprise value calculation
| Current share price (P) | $84.38 |
| No. shares of common stock outstanding | 408,336,600 |
| US$ in thousands | |
| Common equity (market value)1 | 34,455,442) |
| Add: Preferred stock, $0.01 par value; zero outstanding (per books) | —) |
| Total equity | 34,455,442) |
| Add: Long-term debt, net (per books) | 989,210) |
| Total equity and debt | 35,444,652) |
| Less: Cash and cash equivalents | 4,967,970) |
| Enterprise value (EV) | 30,476,682) |
Based on: 10-K (reporting date: 2022-12-31).
1 Common equity (market value) = Share price × No. shares of common stock outstanding
= 84.38 × 408,336,600
Historical Enterprise Value (EV)
CoStar Group Inc., EV calculation
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 Data adjusted for splits and stock dividends.
2 Closing price as at the filing date of CoStar Group Inc. Annual Report.
3 2022 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 72.13 × 406,772,431
- Equity and Market Value Trends
- The common equity (market value) demonstrated a general upward trajectory from 2018 to 2020, increasing from approximately $16.7 billion to $32.9 billion. This represents nearly a doubling over two years. However, in 2021, there was a notable decline, with the value dropping to about $21.1 billion. In 2022, the market value recovered, rising to approximately $29.3 billion but still slightly below the 2020 peak. Since total equity matches the common equity values exactly, these observations apply to total equity as well, indicating no change in capital structure or preferred equity components during this period.
- Total Equity and Debt
- Total equity and debt exhibited a similar pattern to equity alone but with slightly larger values each year, except for 2018 and 2019 where totals were the same as equity. This indicates that debt began to be recorded starting in 2020. The total increased from $16.7 billion in 2018 to about $33.9 billion in 2020, then sharply declined to $22.1 billion in 2021, and rose again to $30.3 billion in 2022. These dynamics suggest fluctuations in the company's financing mix or changes in liabilities alongside equity changes.
- Enterprise Value (EV) Movements
- Enterprise value largely followed a comparable pattern to equity and total capital, increasing from around $15.6 billion in 2018 to a peak of $30.2 billion in 2020. This was followed by a significant drop to $18.3 billion in 2021 and a partial rebound to approximately $25.4 billion in 2022. The EV values are consistently lower than total equity and debt values, aligning with typical valuation differences. The similar trends in EV and total capitalization indicate market perception and valuation changes reflecting financial and operational shifts during this period.
- Overall Observations
- The company experienced significant growth in both equity and enterprise value from 2018 through 2020, nearly doubling in size. This growth was reversed in 2021, with both market capitalization and enterprise value falling by roughly one-third, possibly due to market or operational challenges. In 2022, partial recovery occurred but did not fully restore prior peak values. The introduction and fluctuation of debt starting in 2020 contributed to the total capital structure variability over the analyzed years.